The Moroccan tax law provides several tax incentives for specific sectors of activities.
For companies operating in the tourism sector, the permanent exemption is replaced by a temporary exemption on their profits related to their export turnover during five years from the first export operation.
Industrial companies carrying out activities fixed by regulation and companies carrying outsourcing activities inside or outside the industrial zones, benefit from the total exemption from CIT during the first five (5) consecutive fiscal years as from the date of the beginning of their exploitation:
Sports companies constituted in accordance with the provisions of the law n° 30-09 relating to physical education and sports, promulgated by the dahir n° 1-10-150 of Ramadan 13, 1431 (August 24, 2010), benefit from the total exemption from corporate income tax for a period of five (5) consecutive financial years, as from the first fiscal year of operation
Capital risk companies
Capital risk companies are exempt from CIT on profits derived within the scope of their activities (these are profits related to purchases of companies’ shares that support such companies’ development and the sales of such shares thereafter).
Casablanca Finance City
A law was enacted in 2010 for the setting up of a finance area in Casablanca, called, Casablanca Finance City.
The Casablanca Finance City statute may be granted to specific financial institutions as well as non-financial institutions that offer such services as auditing, fiscal, legal, financial, actuarial, and human resources management advisory.
The above statute may also be granted to regional and international headquarters.
Entities established in Casablanca Finance City are exempt, for their export turnover, from CIT during the first five years following the date they obtain the Casablanca Finance City statute. These companies benefit, for the export turnover, from a reduced rate of 8.75% in subsequent years.
However, this exemption no longer applies at the end of the first sixty (60) months following the date of constitution of the said companies.
Free trade zones (FTZs)
The activities that must be necessarily performed by the companies established in the FTZs are mainly the following (the activities may vary for each FTZ):
- Food processing industries.
- Textile and leather industries.
- Metallurgic, mechanic, electric, and electronic industries.
- Chemical and special chemical industries.
- Services connected with the aforementioned activities.
Entities established in FTZs are exempt, for their export turnover, from CIT during the first five years starting from the date of the beginning of their operation.
However, and notwithstanding any provisions to the contrary, this exemption does not apply to the following companies:
- Companies carrying out their activities in the said zones within the framework of a construction or assembly site.
- Credit institutions and similar bodies having this status in accordance with the legislation in force.
- Insurance and reinsurance companies and insurance intermediaries, having this status in accordance with the legislation in force.
Temporarily, the tax regime in force before January 1, 2021 will remain applicable to companies established in industrial acceleration zones before that date. (Exemption for 5 years and taxation at 8.75% for the next 20 FYs)
Non-resident entities are exempt from capital gains derived from the sale of stocks listed on the Casablanca stock exchange, excluding the shares of real estate entities.
Foreign tax credit
Income tax paid on income earned from outside Morocco may be credited against CIT payable in Morocco if provided by treaty.